Enterprise A2P SMS Market Size, Share & Industry Analysis, By Deployment (On-Premises, and Cloud), By Application (Pushed Content Services, Customer Relationship Management Services, Promotion and Marketing, Interactive Services, and Others), By End User (BFSI, Retail and E-commerce, Travel and Hospitality, Healthcare, Media and Entertainment, and Others), and Regional Forecast, 2024-2032

The global enterprise A2P SMS market size was valued at USD 50.99 billion in 2023. The market is projected to grow from USD 53.31 billion in 2024 to USD 76.18 billion by 2032, exhibiting a CAGR of 4.6% during the forecast period. The U.S. Enterprise A2P SMS Market is anticipated to grow significantly, reaching an estimated value of USD 9.19 billion by 2032, driven by Cost-Effectiveness and Higher Reaching Capabilities.

Enterprise Application-to-Person (A2P) SMS is the process by which businesses and organizations send automated text messages to individuals' mobile devices. These messages are generated by software applications or systems and are used for various purposes, such as marketing campaigns, customer notifications, alerts, and authentication processes. A2P SMS allows enterprises to engage with their customers, employees, and other stakeholders in a convenient and scalable manner, leveraging SMS as a communication channel. This communication method is facilitated through specialized messaging platforms, APIs, and infrastructure, ensuring reliable delivery and adherence to regulatory requirements.

The rise in mobile marketing and advertisements during the pandemic has surged the adoption of A2E messaging services. Furthermore, these services helped industries to engage customers and boost sales during the pandemic period.

Enterprise A2P SMS Market Trends

OTT Platforms to Provide Growth Opportunities for Enterprise A2P SMS

The rapid adoption of smartphone and internet services is boosting the OTT (over the top) messaging platforms such as WhatsApp, Facebook Messenger, and iMessage, among others. The OTT messaging platforms further provide the facility of sharing rich communication services such as images, videos, sound clips, emojis, and stickers. This helps in engaging customers over messages. The significant adoption of OTT platforms has surged the market potential for A2P messaging.

The OTT platforms offer authentication facilities that help in confirming user identity during signups. Various industries require authentications to confirm orders, provide timely notifications, confirm the delivery of orders, etc. OTT-based A2P SMS helps these industries work more efficiently. For instance, the ticket booking service provider RedBus uses WhatsApp, an A2P messaging platform, to send a confirmed ticket to passengers. Along with that, the provider also offers facilities such as booking cancellation, refund status, live bus location, bus reviews, and offers. Thus, the OTT messaging platform is likely to boost market opportunities.

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Enterprise A2P SMS Market Growth Factors

Cost-Effectiveness and Higher Reaching Capabilities of A2P SMS to Drive Growth

A2P SMS solutions provide a streamlined and scalable method for enterprises to distribute messages to a wide audience swiftly. Utilizing advanced telecommunications infrastructure, A2P SMS ensures seamless delivery of messages to recipients across various geographical regions with minimal delays and increased reliability. The cost-effectiveness of A2P SMS, especially when compared to alternative communication methods, such as voice calls or email, highlights its appeal to enterprises aiming to optimize communication expenses while ensuring effective outreach. Moreover, the widespread use of mobile devices and the availability of SMS-enabled applications further bolster the enterprise A2P SMS market, enabling businesses to connect with customers through their preferred communication channels.

• As per Gartner, text messages report a 45% response rate and a 98% open rate compared to email. Thus, considering the higher reaching capabilities of text messages, the adoption of this type of enterprise SMS in industries is growing rapidly. Therefore, small enterprises and start-ups are rapidly adopting A2P messaging services to create brand awareness and enhance customer experience.

RESTRAINING FACTORS

Growing Security Threats to Hamper the Market

The market is expected to grow significantly across industries over the forecast period. However, the increasing number of privacy and security threats is likely to hamper market growth during the forecast period. One of the prominent threats faced by the industries is the grey route threat. As per the report by Mobilesquared, a loss of USD 5.76 billion was experienced due to the grey route in 2018. Similarly, traffic blending is also creating challenges for the service providers. Various companies, even with installed firewall solutions, witnessed traffic blending issues. This is likely to hinder the growth of the enterprise A2P SMS market.

Enterprise A2P SMS Market Segmentation Analysis

By Deployment Analysis

Easy Integration of Services to Drive Cloud-Based A2P Messaging

Based on deployment, the market is bifurcated into cloud and on-premises. The cloud segment is expected to showcase rapid growth and dominate the market with maximum share. The cloud-based A2P messaging services offer a highly engaging and integrated marketing campaign that supports enhancing customer engagement. Also, cloud-based enterprise platforms seamlessly integrate SMS, MMS, voice, and other services to provide a secure mobile messaging experience. This is driving the demand for cloud-based enterprise A2P SMS.

The adoption of on-premises solutions and services is low compared to cloud-based solutions, and large enterprises majorly adopt it as it offers in-house data security.

By Application Analysis

Rising Demand for Enhanced Customer Relationship Management to Fuel Market Growth

Based on application, the market is categorized into pushed content services, customer relationship management services, promotion and marketing, interactive services, and others (information services, workforce management, etc.).

The customer relationship management services segment is expected to lead this segment type during the forecast period. Growing industries, such as BFSI and retail & e-commerce, are adopting A2P SMS for customer relationship management.

The promotion and marketing segment is expected to gain rapid growth during the forecast period. Growing businesses and start-ups are focusing on promotions and marketing by sending application-to-person messages. This helps target a bulk customer base with cost-effective strategies.

Similarly, pushed content services and interactive services are likely to grow steadily owing to the increasing focus on enhanced customer engagement.

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By End User Analysis

Surge in Online Shopping Trend to Lift Retail and E-commerce Growth

Based on the end user, the market is categorized into BFSI, retail and e-commerce, travel and hospitality, healthcare, media and entertainment, and others (hyperlocal businesses, etc.).

BFSI is expected to dominate the segment share during the forecast period. The growing online services and payment transactions are boosting the adoption of A2P SMS in the BFSI industry. Banks and financial institutions are using the application-to-person SMS services for payment reminders, providing one-time passwords, balance statements, anti-fraud alerts, and others.

The retail and e-commerce segment is expected to gain rapid growth during the forecast period owing to the increasing competition. Large and small retailers are investing in A2P messaging to create brand awareness and provide customer engagement services. The growing adoption of online shopping is expected to fuel market growth.

Similarly, the growing demand for mobile health services is significantly driving the demand for enterprise A2P SMS in the healthcare industry.

The media and entertainment industry is estimated to witness steady growth during the forecast period. In the entertainment industry, various voting-based reality shows adopt A2P SMS to reach maximum customers. This is driving the market's growth opportunities.

REGIONAL INSIGHTS

By region, the market has been analyzed across five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

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Asia Pacific is expected to gain maximum revenue share during the forecast period. The increasing adoption of mobile phones and growing internet subscribers in the region are driving the market opportunities. China and India have a vast and distributed customer base, which is driving the demand for enterprise A2P SMS services to engage customers. The telecom industry and mobile operators are rapidly growing in the region. This is likely to boost the market growth in the region.

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Europe is expected to gain rapid growth during the forecast period. Prominent industries in the region, such as BFSI, healthcare, retail, e-commerce, and others, are driving the demand for A2P messaging solutions to manage a vast customer base. Further, upcoming or emerging businesses in the region are adopting A2P SMS services to increase brand awareness. This is likely to drive the demand for enterprise A2P SMS in Europe.

North America is set to gain significant growth during the forecast period owing to factors such as the growing preference for digital advertising, a surge in the number of Internet subscribers, and the growing adoption of advanced technologies such as the Internet of Things (IoT). Rapidly expanding startups and small enterprises in the region are adopting A2P SMS to create awareness and manage the customer base.

The Middle East and Africa region is projected to gain steady growth owing to the increasing collaborations between network operators and A2P messaging providers. Similarly, Latin America is expected to showcase potential opportunities for market expansion. For instance, in December 2020, Brazil-based Sparkle and TIM Group collaborated to offer solutions for protecting A2P SMS from fraudulent routing and illicit bypass attempts. This is likely to drive this market.

List of Key Companies in Enterprise A2P SMS Market

Key Players Launch New Products to Strengthen Market Positioning

Key players, such as Orange Business Services, Global Message Services, Infobip Ltd, Smsglobal, Tyntec Group Limited, Vodafone Group Plc, Genesys Telecommunications, Mitto, CLX Communications AB, and others are entering into strategic partnerships and collaboration to boost business expertise and opportunity. Companies are also collaborating with network operators to provide enterprise customer engagement solutions. These players are investing in advanced messaging solutions to support the uninterrupted delivery of messages.

List of Key Companies Profiled:

• SAP SE (Germany)


• Orange Business Services (France)


• Global Message Services AG (Switzerland)


• Infobip Ltd. (U.K.)


• Smsglobal (U.S.)


• NTT Communications Corporation (Japan)


• Tata Communications (India)


• China Unicom Limited. (China)


• Tyntec Group Limited (U.K.)


• Twilio Inc. (U.S.)


• Mitto (Switzerland)


• Vodafone Limited. (U.K.)


• Genesys Telecommunications (U.S.)


• Zen Interactive Technologies (UAE)


• AMD Telecom S.A (Switzerland)


• CLX Communications AB (Sweden)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: At the Mobile World Congress, Infobip, a cloud communications platform, debuted its Rich Communication Services (RCS) Business Messaging Solution. This offering is designed to assist MNOs and businesses in connecting with customers, enhancing engagement, and delivering interactive conversational messages to ensure memorable experiences.


• November 2023: Bharti Airtel, a telecom provider in India, introduced "Airtel Advantage," a unique platform for global interconnect solutions. This automated one-stop destination is the first of its kind among Indian telecom carriers, providing various services, including International Voice, Direct Inward Dialing (DID), P2A, A2P, P2P SMS, and International Toll-Free Service (ITFS).


• August 2023: Route Mobile partnered with Vodafone Idea to offer A2P SMS monetization solutions. These solutions, driven by Artificial Intelligence/Machine Learning (AI/ML), include an analytical firewall solution, an SMS Hub on the VIL network, and aggregation of international A2P SMS traffic on the VIL network.


• June 2023: VOX Solutions and TNM partnered to ensure secure A2P message delivery to TNM's clients and global businesses. This collaboration empowers TNM to control international A2P SMS and voice traffic, enhancing network security against fraud with VOX's expertise and the VOX-360 platform's advanced capabilities. VOX-360 offers anti-fraud features, A2P SMS monetization, and mobile identity capabilities, enabling operators to block spam and optimize network monetization.


• March 2023: DIDWW, a provider of VoIP and SIP trunking services, enhanced its A2P SMS service by expanding coverage to 21 European countries. This upgrade allows organizations to send personalized messages with alphanumeric sender IDs, boosting brand recognition and customer engagement.

REPORT COVERAGE

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The enterprise A2P SMS market research report highlights leading regions across the world to offer a better understanding to the user. Furthermore, the report provides market insights into the latest industry growth trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further offers some of the drivers and restraints that help the reader gain in-depth knowledge about the market.

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